The Anti-Amazon Cabal Grows: Pearson Takes a Stake in Nook

by YCharts StaffDecember 28, 2012

Not everyone is giving in to Amazon’s (AMZN) domination of the digital book business. Barnes & Noble (BKS) disclosed that Pearson (PSO), the big textbook and media company, agreed to invest $89.5 million for a 5% stake in the book chain’s Nook unit, which sells digital readers (Nooks) and digital books.

Pearson joins Microsoft (MSFT), which earlier invested $300 million in the Nook unit, and the moves suggest some smart minds believe there is room for multiple players in the digital reader and book business.

The longer Barnes & Noble, and its Nook, stick around as legitimate competitors, the longer Amazon is likely to be forced to continue selling its Kindle readers at break-even or a loss, dampening the company’s profits.